The Roaring 20's scenario, and what could go wrong

Happy New Year! Investors were happy to see the tumultuous 2020 come to a close. The past year has been one with little precedent. A pandemic brought the global economy to a screeching halt. The stock market crashed, and it was followed by an unprecedented level of fiscal and monetary response from authorities around the world. As the year came to an end, a consensus is emerging that a cyclical recovery has begun and we are seeing the dawn of a new equity bull. Some have even compared it to the Roaring 20's, when the world emerged from the devastation of the Spanish Flu and World War I.
New bull markets often start with powerful breadth thrusts. As LPL Financial documents, the second year of a new bull can also bring solid returns, albeit not as strong as the first year.

As I look ahead to 2021, I consider three key issues.
  • The economy and its outlook;
  • Market positioning and consensus; and
  • What could go wrong?
The full post can be found here.

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